Source: California Association of Realtors

Home prices continued to grow on a year-over-year basis on a county level throughout the state, with median sales prices in 38 counties rising from a year ago in September.

In September 2024, California's housing market saw a decline in demand despite lower mortgage rates. Sales of single-family homes dropped by 3.4% from August to 253,010 homes, the lowest in nine months, but were up 5.1% from September 2023. The statewide median home price decreased 2.3% from August to $868,150, but it was still 2.9% higher than a year ago. Sales in higher-priced homes remained stable, but the market for homes under $500,000 underperformed.

Economic uncertainty and fluctuating interest rates caused many buyers to hesitate. Inventory increased, with active listings rising 36% year-over-year, reflecting more homes on the market. However, new listings grew more slowly in September. Despite this, regions like the Far North and the San Francisco Bay Area saw sales increases, while others, like the Central Coast, experienced declines.

Housing prices are expected to moderate in the coming months as the market enters the off-season, offering potential opportunities for buyers. The median time to sell a home extended to 24 days from 18 days a year ago. The sales-to-list-price ratio remained at 100%, while the median price per square foot rose to $424. Mortgage rates averaged 6.18%, down from 7.20% in 2023.

THE FACTS

Home Sales:

• 253,010 existing single-family homes sold in September (seasonally adjusted annualized rate)

• Down 3.4% from August 2024

• Up 5.1% from September 2023

1. Median Home Price:

   • $868,150 in September

   • Down 2.3% from August 2024

   • Up 2.9% from September 2023

2. Inventory:

   • Active listings increased 36% year-over-year

   • Unsold Inventory Index rose to 3.6 months (up from 3.2 in August and 2.8 in September 2023)

   • New listings up for the ninth consecutive month

3. Market Segments:

   • $1 million-and-above sales remained low at 3.9%

   • Sub-$500,000 market underperformed, with sales down 8.6% year-over-year

4. Regional Performance:

   • Sales increased in 3 of 5 regions, with the Far North leading (+7.2%)

   • Central Coast (-1.9%) and Central Valley (-1.6%) fell below year-ago levels

   • 27 counties saw sales increases; Lassen led with a 78.6% increase

   • Mono County had the largest decline at -50.0%

5. Price Trends:

   • Home prices grew in 38 counties year-over-year, with Lassen posting the largest increase (+46.2%)

   • 15 counties saw price declines, with Mariposa dropping the most (-25.4%)

6. Other Key Metrics:

   • Median days on market: 24 days (up from 18 days in September 2023)

   • Sales-to-list-price ratio remained at 100%

   • Median price per square foot: $424 (up from $416 in September 2023)

   • Mortgage rate averaged 6.18% in September (down from 7.20% in 2023)

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